- A new survey by MoneySmart finds that 46% of Hong Kong and Singaporean adults are actively trying to go against their parents’ bad financial habits.
- The new study looked at how parents’ behaviours shape financial habits in later life, finding that those whose parents tended to overspend, shop impulsively or struggle with debt, were likely to do the same as adults.
- Over half (54%) of Hong Kong and Singaporean adults believe that their parents have had a strong influence on their financial habits.
HONG KONG SAR & SINGAPORE –
Media OutReach Newswire – 22 May 2024 –
A new study released today by leading personal finance portal
MoneySmart, reveals the extent to which parents’ behaviours shape Singaporean and Hong Konger’s financial habits in later life.
The study, which interviewed 2,000 Hong Kong and Singaporean adults, found that the majority (54%) believe their parents have had a strong influence on their financial habits, with 46% actively trying to go against their parents’ bad financial habits.
Those whose parents tended to overspend and shop impulsively were found to often mirror those same behaviours in later life. 56% of those who stated their parents overspent and 59% of those who said that their parents shopped impulsively, stated that they have the same tendencies.
In addition, 58% of those whose parents had struggled with debt before, also reported having struggled with debt themselves.
The influence that parents have in forming financial habits
The study found that Hong Kong and Singaporean adults often copy the same patterns and behaviours that they see from their parents when growing up, with the majority (52%) believing that they have inherited good habits from their parents when it comes to managing their finances.
Those whose parents budgeted their finances, saved regularly, or invested their money, are likely to do the same as adults. 78% of those who said that their parents regularly saved money each month say they do the same and 73% of those who said their parents regularly budgeted their spending, also say they do the same.
Financial coach and expert, Michelle Howell, at Singapore-based family coaching practice Frolic for Life says that these behaviours are often learnt subconsciously as a child, then often carry through to later life:
“Fundamental money habits can start to become formed from as early as 6-7 years old and are often developed by watching how parents behave with money whether consciously, or unconsciously.
During our formative years, we tend to absorb and internalise what our parents do and say about money, with our parents’ spending or saving habits, adherence to societal norms, or unique money behaviours often shaping our own beliefs and behaviours.“
The lessons we learn from our parents
Interestingly, there appears to be a division in opinions among the respondents surveyed. While approximately half are actively trying to go against their parents’ bad habits, 59% say that they actively try to adopt some of the good financial habits that their parents demonstrated.
70% of those interviewed for the study said that their parents taught them how to manage their money as a child. In fact, those who were taught how to manage their money as a child were 1.3 times as likely to report being financially secure in later life.
The top five lessons most commonly passed on from parents:
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Create a savings plan (58%)
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Seeking good deals (51%)
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Keep track of expenses (45%)
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Always pay debt on time (44%)
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Create a budget plan (40%)
The vast majority (80%) of Hong Kong and Singaporean adults believe that it is the responsibility of the parents to teach their children good money habits, such as saving and budgeting, with 76% stating that it’s important to teach children about financial products such as
credit cards and
personal loans, when appropriate to do so.
To find out more about how Hong Kongers are influenced by their parents please visit:
https://www.moneysmart.hk/en/personal-loan/how-parents-influence-our-financial-habits-ms. Or to find out how Singaporean adults compare, please visit:
https://www.moneysmart.sg/credit-cards/how-parents-influence-our-financial-habits-ms
Survey Methodology
Research conducted on behalf of MoneySmart by 3Gem amongst 2,000 Hong Kong and Singaporean adults (aged 18+). The survey was carried out online between 3 – 13 February 2024.
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